Correlation Between Newhydrogen and Xinyi Solar
Can any of the company-specific risk be diversified away by investing in both Newhydrogen and Xinyi Solar at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Newhydrogen and Xinyi Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newhydrogen and Xinyi Solar Holdings, you can compare the effects of market volatilities on Newhydrogen and Xinyi Solar and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Newhydrogen with a short position of Xinyi Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newhydrogen and Xinyi Solar.
Diversification Opportunities for Newhydrogen and Xinyi Solar
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Newhydrogen and Xinyi is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Newhydrogen and Xinyi Solar Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinyi Solar Holdings and Newhydrogen is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Newhydrogen are associated (or correlated) with Xinyi Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinyi Solar Holdings has no effect on the direction of Newhydrogen i.e., Newhydrogen and Xinyi Solar go up and down completely randomly.
Pair Corralation between Newhydrogen and Xinyi Solar
Given the investment horizon of 90 days Newhydrogen is expected to under-perform the Xinyi Solar. In addition to that, Newhydrogen is 1.39 times more volatile than Xinyi Solar Holdings. It trades about 0.0 of its total potential returns per unit of risk. Xinyi Solar Holdings is currently generating about 0.01 per unit of volatility. If you would invest 61.00 in Xinyi Solar Holdings on October 25, 2024 and sell it today you would lose (22.00) from holding Xinyi Solar Holdings or give up 36.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Newhydrogen vs. Xinyi Solar Holdings
Performance |
| Timeline |
| Newhydrogen |
| Xinyi Solar Holdings |
Newhydrogen and Xinyi Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newhydrogen and Xinyi Solar
The main advantage of trading using opposite Newhydrogen and Xinyi Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newhydrogen position performs unexpectedly, Xinyi Solar can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Xinyi Solar will offset losses from the drop in Xinyi Solar's long position.| Newhydrogen vs. Solar Integrated Roofing | Newhydrogen vs. Ascent Solar Technologies, | Newhydrogen vs. SunHydrogen | Newhydrogen vs. Solar Alliance Energy |
| Xinyi Solar vs. SMA Solar Technology | Xinyi Solar vs. SMA Solar Technology | Xinyi Solar vs. GCL Poly Energy Holdings | Xinyi Solar vs. Three Sixty Solar |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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